The size of DP World's IPO, the region's largest initial public offering, has been increased from 20 per cent to 23 per cent due to strong demand from institutional and UAE retail investors.
The move by the global marine terminal operator will enable it to raise as much as Dh18 billion ($4.96 billion).
Sultan Ahmed bin Sulayem, Chairman of Dubai World, DP World's parent group, said the total number of shares being offered in the landmark issue, which opened on November 4, will be 3,245.3 million plus a greenshoe option of 572.7 million, amounting to 3,818 million shares.
The shares are being offered by DP World's sole shareholder, Dubai World subsidiary Port & Free Zone World (P&FZ World), at a indicative price range of $1.00 to $1.30.
"We have seen strong demand both internationally from institutional investors and in the UAE from retail investors for this unique investment opportunity. To help meet that demand we have decided to increase the offering," Bin Sulayem said.
Final pricing and allocation is expected to be announced on or about November 21. The selling shareholder reserves the right to allocate shares at its sole discretion. The shares are expected to be listed on the Dubai International Financial Exchange (DIFX) on November 26 .
The amount raised through the IPO which has been open to all GCC nationals and UAE residents with $6,000 required as the minimum application will be used to to repay a $3.5 billion bond.
The final price of the securities will be in US dollars and would be established through an international book building process. This will set a market price before listing.
DP World has achieved a strong financial performance in the first half of 2007. It posted an increase in throughput year on year of 23 per cent to 20.3 million TEUs. In 2006, DP World's volumes grew at about 18 per cent compared with broader market growth of about 11 per cent.
The port operator has also put into motion an expansion plan that would nearly double its capacity to almost 90 million TEUs in 10 year's time with its terminals connecting even more markets around the world.
DP World has 42 terminals in 22 countries, many of which are located in the Middle East, India and China, from where much of the company's future growth is expected to be concentrated.
Lead Managers of the issue included Deutsche Bank AG, Merrill Lynch International, Millennium Finance Corporation and SHUAA Capital PSC are acting as Joint Global Co-ordinators and Joint Lead Managers to the listing.
The receiving banks for the UAE retail offer are Mashreq Bank PSC, Emirates Bank, Abu Dhabi Commercial Bank and First Gulf Bank. Mashreq Bank PSC is the lead receiving bank. Source
The move by the global marine terminal operator will enable it to raise as much as Dh18 billion ($4.96 billion).
Sultan Ahmed bin Sulayem, Chairman of Dubai World, DP World's parent group, said the total number of shares being offered in the landmark issue, which opened on November 4, will be 3,245.3 million plus a greenshoe option of 572.7 million, amounting to 3,818 million shares.
The shares are being offered by DP World's sole shareholder, Dubai World subsidiary Port & Free Zone World (P&FZ World), at a indicative price range of $1.00 to $1.30.
"We have seen strong demand both internationally from institutional investors and in the UAE from retail investors for this unique investment opportunity. To help meet that demand we have decided to increase the offering," Bin Sulayem said.
Final pricing and allocation is expected to be announced on or about November 21. The selling shareholder reserves the right to allocate shares at its sole discretion. The shares are expected to be listed on the Dubai International Financial Exchange (DIFX) on November 26 .
The amount raised through the IPO which has been open to all GCC nationals and UAE residents with $6,000 required as the minimum application will be used to to repay a $3.5 billion bond.
The final price of the securities will be in US dollars and would be established through an international book building process. This will set a market price before listing.
DP World has achieved a strong financial performance in the first half of 2007. It posted an increase in throughput year on year of 23 per cent to 20.3 million TEUs. In 2006, DP World's volumes grew at about 18 per cent compared with broader market growth of about 11 per cent.
The port operator has also put into motion an expansion plan that would nearly double its capacity to almost 90 million TEUs in 10 year's time with its terminals connecting even more markets around the world.
DP World has 42 terminals in 22 countries, many of which are located in the Middle East, India and China, from where much of the company's future growth is expected to be concentrated.
Lead Managers of the issue included Deutsche Bank AG, Merrill Lynch International, Millennium Finance Corporation and SHUAA Capital PSC are acting as Joint Global Co-ordinators and Joint Lead Managers to the listing.
The receiving banks for the UAE retail offer are Mashreq Bank PSC, Emirates Bank, Abu Dhabi Commercial Bank and First Gulf Bank. Mashreq Bank PSC is the lead receiving bank. Source
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